THE LIQUIDATOR of Co Waterford-based poultry producer Cappoquin Chickens has been given permission by the High Court to continue to trade for the next six weeks.
The court heard that a co-operative of growers and breeders who supply the firm, which employs some 200 people, is considering submitting a bid to buy the company.
Yesterday at the High Court Ms Justice Mary Finlay-Geoghegan consented to the liquidator's application to allow the firm to trade until mid-October to maximise the value of its livestock.
Late last Friday, at the High Court, Aidan O'Connell of Deloitte Touche was appointed as liquidator of Cappoquin Chickens, Cappoquin, Co Waterford.
The firm is one of Ireland's largest poultry producers.
Mr O'Connell had previously been appointed as examiner to the company.
Despite some interest, a deal to secure investment in the firm did not materialise before last Friday's 4pm deadline.
Yesterday the High Court heard that over the next six weeks the liquidator hoped the company would process and sell its stock of 1.3 million chickens, which would earn more than €500,000.
Prospective buyers could look at the firm during the period.
The company will begin to wind down during this period, the court heard.
Ms Justice Finlay Geoghegan said she was agreeing to the liquidator's application to operate the firm over the next six weeks "in a manner as he considered appropriate in the interests of the winding-up order".
She agreed to give the liquidator liberty to retain and dismiss the firm's employees as well as permission to borrow up to €200,000 which would cover the costs of allowing the company to trade until October 13th.
The liquidator could ask the court to extend that six-week period if required, the judge said.
James Staines, a solicitor representing the breeders and growers who have supplied the firm, said a co-op of the breeders and growers was considering buying out the company's assets. That process was still "at an early stage".
Mr Staines, who said his clients consented to the six-week period being granted, expressed their concerns over matters including financial losses, animal health and environmental issues after the six-week period is completed.
Counsel for the Revenue Commissioners consented to the order being made.
Last May the High Court was told that a statement of affairs of Michael D O'Connor, Sons Company Ltd, trading as Cappoquin Chickens, showed a deficit of €806,000 as a going concern and a debt of €7 million on a winding-up basis.
The High Court appointed Mr O'Connell as examiner after it was told that the company had a reasonable prospect of survival.
The company said its deteriorating finances were due to the increase in the cost of foodstuff, low-cost imports from South America and Asia, and the 2006 outbreak of avian flu in Europe.
The company blamed avian flu for the fall in turnover to €26 million in 2006 from €29 million in 2005.
The 35-year-old company has been making a loss for the last four years and has 13 creditors that are owed more than €100,000.
It is one of seven poultry producers in Ireland and processes 220,000 chickens each week.